Parliamentary Question to the Minister for Communications, Energy and Natural Resources

To ask the Minister for Communications, Energy and Natural Resources his proposals to accelerate an increase in renewable energy resources through wind, wave and sustainable biomass as an alternative to importing fuels; the groups that are responsible for reporting this matter; and if he will make a statement on the matter.

Reply Minister for Communications, Energy and Natural Resources
(Mr P Rabbitte)

The Government is committed, in order to meet our 2020 binding targets, to increase renewable energy to 40% in the electricity sector, 10% in the transport sector and 12% in the heating sector, which together amounts to 16% overall, in line with our target under the EU Renewable Energy Directive.

A number of different organisations are providing details on progress in this regard.   This week the Sustainable Energy Authority of Ireland (SEAI) published its ‘Energy in Ireland’ report for 2012.   In absolute terms, the total use of renewables in Ireland has almost trebled between 2003 and 2011.   This report showed that, in 2011, Ireland had 17.6% renewable electricity, 2.6% renewable transport and 4.8% renewable heating, which amounted in total to 6% of all energy consumed being from renewable sources.   Other bodies such as EirGrid and ESB Networks report on matters such as daily wind energy penetration and grid connection issues.

In order to meet our current energy demands, we are importing around 90% of our fuel requirements.   This is at a cost of approximately €6bn per annum.   Developing renewable sources of energy will help Ireland to meet our 2020 targets and to reduce our dependence on these fuel imports by replacing them with indigenous resources.

In the electricity sector, Ireland has approximately 2000 Megawatts(MW) of renewable generation connected to the electricity grid.   To meet our renewable electricity targets for 2020, it is estimated that a further 2000 MW of renewables will be required.

In addition to achieving this ambitious target, a significant challenge will be to ensure that we are able to build out the necessary supporting grid infrastructure to accept new renewable generation, which is typically located in more remote areas that have weak grid systems.   Our ability to get this infrastructure built is critical to achieving Ireland’s renewable energy ambitions.   In this regard, EirGrid’s Grid 25 strategy and implementation plans are designed to deliver the necessary grid developments and grid reinforcements to underpin the new renewable generating capacity, as well as regional economic development.

To incentivise the development of renewable electricity, a ‘feed in tariff’ scheme is in place.   Renewable Energy Feed In Tariff (REFIT), which was introduced in 2006 for wind sourced generation, small hydro, landfill gas and biomass generated electricity, operates by guaranteeing a minimum floor price for renewable energy generation over a 15 year period.   In order to accelerate the uptake of renewables, two new REFIT schemes were introduced in 2012 €“ one, REFIT 3, to encourage biomass sourced generation and one to encourage further wind sourced generation as well as generation from small hydro and landfill gas.   The REFIT schemes are funded through the Public Service Obligation (PSO) levy that is funded by all electricity consumers.

REFIT 3 is designed to incentivise the addition of 310 MW of renewable electricity capacity to the Irish electricity grid.   The technologies supported include anaerobic digestion and combined heat and power, which will also contribute to our renewable heat targets.   It also contains incentives for co-firing of biomass in peat powered generation plants with a premium for the use of energy crops.   REFIT 3 will, over time, create further demand for biomass, which will provide new opportunities in the biomass sector and will encourage the establishment of new rural enterprises.

The electricity market is fully liberalised and decisions to participate in the scheme are commercial decisions for the individual electricity generating companies involved. My Department informs me that there has been significant interest in the REFIT 3 scheme and letters of offer have been already given for approximately 44MW of generation with a similar amount under consideration.   Other developers are at earlier stages of development with their projects.

Separate to the above, public funding has been allocated to the wave and tidal energy sector in recent years. This sector is still at the research and development phase and is not yet commercially viable.   The Hydraulics and Maritime Research Centre (HMRC) in Cork has a wave test tank where early stage devices can be tested and has developed a systematic protocol for the scaling up and testing of wave technology. Certain third level institutions are engaged in ocean energy research across the Irish university system.

SEAI’s ocean energy development unit has been engaged in a series of tasks to encourage the ocean energy sector, including through the administration of a prototype development fund of grants whereby up to 50% co-funding for scale testing and other research in the ocean area has been provided to industry.   ESB has been involved in the Westwave project, which has had as a goal to install and operate wave energy converters capable of generating 5MW of clean electricity by 2015. SEAI together with the Marine Institute has been involved in the development of a wave test site in Galway Bay, where quarter scale prototypes can be tested and the Marine Institute, together with IBM has been involved in the SmartBay project, creating ICT links with the development of ocean energy.

The public funding in this area is in anticipation of potential for a future ocean energy industrial sector and the maximisation of benefits to the Irish State and citizens in that regard in the event that the sector becomes commercially viable.